What is the recommended action for a company that fears discovery will disclose its trade secrets in a lawsuit?

The recommended action for a company concerned about the potential disclosure of trade secrets during discovery is to request a protective order from the court. This approach provides a formal mechanism to safeguard sensitive information and can limit the access of other parties to specific documents or testimony that contain trade secrets.

Obtaining a stipulation that limits the scope of discovery could be beneficial, but this typically requires the agreement of all parties involved. If the other side does not agree, the company could still be at risk of having its trade secrets disclosed. In contrast, a protective order is court-enforceable and can impose explicit restrictions on how sensitive information is handled, thereby offering stronger legal protection against unauthorized disclosure.

Filing a motion to dismiss the case does not address the issue directly related to the fear of trade secret disclosure, as it challenges the validity of the lawsuit rather than the discovery process. Similarly, waiting until discovery is completed would leave the company vulnerable to exposure of its trade secrets without any protective measures in place.